Re Agreement

18 October, 2004

   ROLLS-ROYCE NAMES GOODRICH AND HAMILTON SUNDSTRAND AS TRENT 1000 PARTNERS   

Rolls-Royce announced today (18 October) that Goodrich Corporation and Hamilton
Sundstrand, both headquartered in the United States, have been selected as risk
and revenue sharing partners (RRSPs) on the Trent 1000 engine being developed
for the Boeing 7E7 Dreamliner.

Goodrich's Engine Control Systems business unit, based in Birmingham, UK, will
design and manufacture the Trent 1000's engine control system. Goodrich is
already a partner on every member of the Trent series, and also has a control
systems agreement covering smaller aero engines produced by Rolls-Royce.

Hamilton Sundstrand, which will be responsible for the Trent 1000 gearbox
system, is already a partner on the Trent 500 and Trent 900 programmes.

Dominic Horwood, Programme Director, Trent 1000, said: "The ability of partners
to deliver consistently on time and to the highest quality standards is vital
to all collaborative efforts. Goodrich and Hamilton Sundstrand were selected
because they have world-class capability in specialist areas, and have proved
their value through existing relationships. They will help establish the Trent
1000 as the preferred engine for the Boeing 7E7."

Goodrich is a leading global supplier of systems and services in the aerospace
and defence industries, with links to Rolls-Royce extending for over 60 years
in both defence and civil engine projects. The company is headquartered in
Charlotte, North Carolina.

Hamilton Sundstrand, a subsidiary of United Technologies Corporation, is a
world leader in aerospace systems and services for commercial, military and
space programmes. The company is based in Windsor Locks, Connecticut.

Goodrich and Hamilton join Japan's Mitsubishi Heavy Industries (MHI) and
Kawasaki Heavy Industries (KHI) as Trent 1000 RRSPs.

Rolls-Royce is in discussion with other potential programme partners, and
further announcements are expected shortly.

A programme of component rig testing has already begun for the Trent 1000, and
detailed design of the engine will be completed by the end of the year.

Development testing will start in Spring 2006, followed by engine certification
by the airworthiness authorities in 2007. The Trent 1000 will enter service in
2008.

ANA (All Nippon Airways) of Japan, the launch customer for the 7E7, announced
last week that it had selected the Trent 1000 to power 50 7E7s. Air New
Zealand, the only other 7E7 customer so far to make an engine decision, also
chose the Trent 1000 for its two aircraft.

Corporate note to editors

Rolls-Royce operates in four global markets - civil aerospace, defence
aerospace, marine and energy. It invests in technology and capability that can
be exploited in each of these sectors to create a competitive range of
products.

The success of these products is demonstrated by the company's rapid and
substantial gains in market share over recent years. The company now has a
total of 54,000 gas turbines in service worldwide. The investments in product,
capability and infrastructure to gain this market position create high barriers
to entry.

Rolls-Royce has a broad customer base comprising more than 500 airlines, 4,000
corporate and utility aircraft and helicopter operators, 160 armed forces and
more than 2,000 marine customers, including 50 navies. The company has energy
customers in nearly 120 countries. Rolls-Royce employs around 35,000 people, of
which 21,000 are in the UK. Forty per cent of its employees are based outside
the UK - including 5,000 in the rest of Europe and 8,000 in North America.

The large installed base of engines generates demand for the provision of
services. A key element of the company's strategy is to maximize services
revenues, which have increased by 60 per cent over the past five years, by the
provision of a comprehensive portfolio of services.

Annual sales total nearly £6 billion, of which more than 50 per cent are
services revenues. The order book is more than £19 billion, which, together
with demand for services, provides visibility as to future activity levels.

For further details contact:

Martin Johnson
Vice President, Communications
Rolls-Royce
PO Box 31
Derby DE24 8BJ
UK

Tel: [phone]
Fax: [phone]
Email: [e-mail]